Merit Raise Calculator

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Merit Raise Calculator Powered By Docstoc
					EXAMPLE: Merit Raise / Bonus Calculation Worksheet
        Steps                                                                                                                                                                                     Inputs are yellow

                                  Performance
  First, define ratings              Rating                      5                                    4                                  3                                   2                                    1
                                                 Superior performance marked          Employee consistently exceeds       Employee is consistently meeting   An employee who is new to            Performance has not met the
                                                 with creative, innovative results,   the requirements for the position   job requirements on a regular      FirstPlace or new to the position.   expected level given the time,
                                                 far exceeds job requirements.        held and has demonstrated highly    basis. Can perform the assigned    Requires reasonable training,        training, and direction provided to
                                                 Individual acknowledged by           proficient job performance in the   tasks with little assistance or    assistance, and direction.           the individual. An employee in
                                                 management as a leader and           evaluation period.                  direction.                         Continues to show improvement        this category may have performed
                                                 model (technical or Supervisorial)                                                                          and is progressing towards job       at a higher level in the past. This
                                                 or Supervisorial within FPF.                                                                                proficiency OR May be an             represents decline in performance
                                                                                                                                                             employee whose performance has       for an employee receiving higher
                                                                                                                                                             slipped from a job                   ratings in the past or a new hire
                                        DEFINE                                                                                                                                                    who has not met expectations.
                                                                                                                                                                                                  Employees in this category must
                                                                                                                                                                                                  be discussed with your supervisor
                                                                                                                                                                                                  and an improvement plan
                                                                                                                                                                                                  implemented within fifteen days
                                                                                                                                                                                                  of the performance development
                                                                                                                                                                                                  review




Second, define
approximate raise or              Performance
bonus for each rating                                            5                                    4                                  3                                   2                                    1
                                     Rating
group


                                Raise or bonus               5.00%                                3.25%                               2.50%                              1.50%                                0.50%


Third, calculate number
of employees that will
receive each                                                     5                                    4                                  3                                   2                                    1
rating…found on                   Performance
employee roster                      Rating
                                  Estimated
                                 Percentage of                20%                                  24%                                 24%                                 12%                                  20%
sum must equal 100%               Employees                                                                                                                                                                                             100.00%
 total number of
employeeslinked to                 Employees                                  25
employee roster

                              Resulting Number
                               of Employees at                               5.0                                 6.0                                 6.0                                 3.0                                  5.0
                                  each rating
                                                                                                                                                                                                                                          25.0


Fourth, calculate total
annual gross payroll               Gross Pay
received by employees
                                   Received
linked to employee
roster                                                   $1,619,650

Fifth this will result in
same $ size bonus or
                                  Approximate
                                                                                                                                                             Approximate Total
raise as if everyone              equal bonus                 2.6%                                                        Approximate Total bonus                                                  $                     41,463
                                                                                                                                                             bonus pool
received                           equivalent                                                                             pool




          Merit Calculation Worksheet
Employee Name   Current Salary   Performance rating
 Employee 1       $45,000                5
 Employee 2       $45,000                4
 Employee 3       $76,000                3
 Employee 4       $88,650                4
 Employee 5       $65,000                1
 Employee 6       $65,000                3
 Employee 7       $65,000                4                Performance Rating       Percentage of Employees
 Employee 8       $65,000                5                        5                          20%
 Employee 9       $65,000                2                        4                          24%
 Employee 10      $65,000                4                        3                          24%
 Employee 11      $65,000                2                        2                          12%
 Employee 12      $65,000                1                        1                          20%
 Employee13       $65,000                1                                                  100%
 Employee14       $65,000                4
 Employee15       $65,000                3
 Employee 16      $65,000                5
 Employee 17      $65,000                3
 Employee 18      $65,000                4
 Employee 19      $65,000                5
 Employee 20      $65,000                3
 Employee 21      $65,000                3
 Employee 22      $65,000                1
 Employee 23      $65,000                1
 Employee 24      $65,000                5
 Employee 25      $65,000                2
                 $1,619,650             3.12          Total Salary                               $1,619,650
                                                      Average Performance Rating                       3.12

				
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PARTNER Kirk Podawiltz
Kirk Podawiltz has over 18 years of corporate staffing leadership and executive recruiting experience; working in corporate staffing leadership positions with companies such as Nortel Network, Lucent Technologies, Google, and Merrill Lynch. He has also spent many years working as in-house and external executive recruiter. Some of his in-house engagements have been with Apple, Intuit, and CSAA where he has successfully executed recruiting strategies and developed leadership assessment guide for almost every search he conducted to hire top executives for his clients. • Recruitment & Retention • Assessment & Evaluation • Compensation & Benefits • Performance Management • Learning & Development • Workforce Planning & Staffing Models • On-Boarding and New Hire Assimilation • Quantitative Evaluation of Human Resources Function and Strategic HR Reporting • Succession Planning